Question

Assume that you’re the director of one of the corporations listed below and have been presented with the business opportunity described in the scenario. Would you advise the corporation to accept the opportunity? Make sure to fully explain your answer, considering both the financial return expected and any related ethical concerns.

BabyHealth is seeing decreasing sales of its powdered infant formula in the United States due to more and more mothers choosing to breastfeed their babies. In an effort to offset these losses, BabyHealth chooses to sell their formula in third world countries. However, it is widely known that the water sources in these countries is often contaminated and not boiled prior to use.

Answer 1

Well it would be good in a financial viewpoint because you would make money guaranteed but in a ethical viewpoint it would be bad because your forcing people in a third world country to buy powder or their kids will die.

Answer 2

Being the director of the company, i would have to take harsh step keeping in my mind the financial standing of the company.

I would go for the export of powdered milk to the third world countries. But before going for this decision, I would ask my team to first do intensive marketing and do the sales process of the product within the United States as much as possible. After that, i would go for the export of my product.

I know, it is not ethically correct, but being the director, I shall try to minimize the financial losses by taking bold actions. So I would go with the export of the milk to the third world countries.